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Fiduciary Governance
The Auditing Standards Board of the American Institute of CPAs (AICPA) has voted to issue a new auditing standard. It has taken this step to address auditor reporting on ERISA plan financial statements.
The new auditing standard, “Forming an Opinion and Reporting on Financial Statements of...
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The parties in another proprietary fund suit have come to terms, both financially and with an agreement for “ongoing prospective relief.”
Under the terms of the settlement, Waddell & Reed Financial, Inc. will cause its fiduciary insurance carrier (RLI Insurance Company) to pay $4.875 million...
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There have been massive developments in the industry over the past year — the Tax Cuts and Jobs Act of 2017; the 2018 budget bill; the Retirement, Savings, and Other Tax Relief Act of 2018; the Taxpayer First Act of 2018; and so much more.
Each of these has led to significant changes in 401(k)...
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The New Jersey Bureau of Securities on Nov. 19 held a public hearing on the proposed state rule that would implement a uniform fiduciary standard in the Garden State. It is the second public hearing on the proposal; American Retirement Association General Counsel Craig Hoffman offered testimony at...
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Both parties in a proprietary fund suit lost most of their attempts to make their case without going to trial.
The ruling from Judge Claudia Wilken of the U.S. District Court for the Northern District of California involved two separate suits brought by participants in Franklin Templeton’s 401(k)...
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“Best interest” is a very familiar term after the last decade plus of discussion of fiduciary rules and standards. But its meaning is still a bit fluid and certainly wide-ranging. In a recent blog post, Fred Reish discusses what “best interest” really means.
“‘Best Interest’ has become part of the...
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Thanksgiving has been called a “uniquely American” holiday, and though that is perhaps something of an overstatement, it is unquestionably a special holiday, and one on which it seems appropriate to reflect on all for which we should be thankful. And so…
I’m thankful that participants, by and...
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The ERISA Advisory Council has recommended that the Department of Labor (DOL) issue new guidance on ERISA bonding. The recommendation comes in a report to Secretary of Labor Alexander Acosta that includes the council’s evaluation of the DOL’s regulations and guidance on ERISA bonding requirements...
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In what will be his third stint as chairman, veteran senator Charles Grassley (R-IA) has decided to return as head of the powerful Senate Finance Committee.
When the 116thCongress convenes in January, Grassley, 85, plans to step down from his current position as chairman of the Senate Judiciary...
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The IRS has issued a draft of the Form 5500-EZ to be used in reporting concerning 2018.
The IRS notes that there are two changes in the form since last year:
The title of Form 5500-EZ has been changed to match the purpose of the form to include both a one-participant retirement plan and a...
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Those served by the Pension Benefit Guaranty Corporation’s (PBGC) single-employer program have something to smile about — the PBGC has reported that the program now shows a positive balance.
The news, contained in the PBGC’s Fiscal Year 2018 Annual Report, shows progress at a much faster rate than...
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The Senate Finance Committee on Nov. 15 in a 25-2 vote approved Gordon Hartogensis to be Director of the Pension Benefit Guaranty Corporation (PBGC). Their action sends Hartogensis’ nomination to the Senate floor for a vote by the full chamber.
Finance Committee Chairman Orrin Hatch (R-UT) said in...
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The 2018-2019 Treasury Priority Guidance Plan includes more than 60 regulatory projects relating to implementation of the Tax Cuts and Jobs Act that the agency intends to address in the coming year.
Overall, the plan contains 239 guidance projects that will be the focus of efforts through June 30...
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The parties in yet another proprietary fund suit have come to terms, rather than go to trial.
The defendants here are Jackson National, sued by an employee/participant (Becky A. Matthews Pease) who had charged that 89% of the $608,784,892 in plan assets were “…invested in high cost and poorly...
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UPDATED NOV. 8, 2018
As expected, the Democrats took control of the House of Representatives in the congressional midterm elections, portending a major shift in focus for retirement policy issues.
Currently the party affiliation in the House stands at 219 Democrats and 193 Republicans. In the...
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Halloween is the time of year when one’s thoughts turn to trick-or-treat, ghosts and goblins, and things that go bump in the night. But what are the things that keep – or should keep – plan fiduciaries up at night?
Well, there are the things like…
Getting Sued
The headlines are (still) full of...
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A federal grand jury in Texas has indicted Jeffrey and Wendy Richie on claims that they stole $14.5 million from at least 1,000 plan participants in at least 20 retirement plans.
The Richies – Jeffrey, the President and CEO of Vantage Benefits Administrators Inc., and Wendy, VP of Administration...
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The federal government’s updated unified regulatory agenda has shed light on the status of the Securities and Exchange Commission’s and Department of Labor’s efforts on investment advice and the now-vacated fiduciary rule.
The SEC’s updated regulatory agenda confirms that the agency has set a...
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The American Retirement Association filed a comment letter Oct. 19 with the New Jersey Bureau of Securities concerning the fiduciary conduct standards the state government is considering. Gov. Phil Murphy (D) announced plans in September to issue a rule strengthening the standard for investment...
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The Office of Management and Budget (OMB) has issued a comprehensive report on the regulatory agenda of the Department of Labor (DOL) for fall 2018. It includes proposed and final rules under consideration by the DOL’s Employee Benefits Security Administration (EBSA) that would affect retirement...
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